PAT scheme is a regulatory instrument to reduce specific energy consumption in energy intensive industries, with an associated market-based mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded.

Under this scheme, reductions in specific energy saving targets are assigned to Designated Consumers (DCs) for a three-year cycle. The target reduction for each DC is based on their current levels of energy efficiency, so that energy efficient DCs will have lower target of percentage reduction, as compared to less energy efficient DCs which will have higher targets. While calculating the specific energy consumption “gate-to-gate” approach is adopted, thereby including all energy consumption against the total production. A robust process of normalization is adopted to neutralize the impact on specific energy consumption due to factors beyond the control of participating DCs. Verification of the performance of DCs at the end of the cycle is carried out by a cadre of energy professional i.e. Accredited Energy Auditors who are empanelled with Bureau of Energy Efficiency.

PAT Cycle includes following Designated Consumers

• Thermal Power Plant
• Cement
• Aluminium
• Pulp & Paper
• Iron & Steel
• Textile